A Quote by Kenneth Arrow
From the time I first understood economic principles, I was always concerned also that any system be operated on an efficient basis, which meant decentralization because knowledge is not concentrated anywhere. It's based on motivation, and so these are the advantages of, say, the cautious case for capitalism, that the market system is efficient.
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I think that Capitalism, wisely managed, can probably be made more efficient for attaining economic ends than any alternative system yet in sight, but that in itself is in many ways extremely objectionable.
The point is always made that capitalism is efficient, people say 'You might not like it, but it works.' But Britain is not efficient.
We do not have free market capitalism in America; we have crony capitalism. There is a huge difference between free market capitalism that democratizes a country and makes us more efficient and prosperous and corporate crony capitalism.
The switch to the market in Eastern Europe, of course, has not exactly been one of the greatest advertisements for the market. There's no question the socialist system - and I hate to use the word 'socialist,' but I suppose some description of a system in which the state is in control - was breaking down, really collapsing. In these countries, most markedly in Russia itself and in a number of the others, it obviously was based on a tyranny, which is unacceptable even if it were producing good economic results, which it was not.
Poetry isn't an efficient tool for preserving experience, any more than it's an efficient mode of communication, but who says that it should be efficient?
If we did not have a patent system, it would be irresponsible, on the basis of our present knowledge of its economic consequences, to recommend instituting one. But since we have had a patent system for a long time, it would be irresponsible, on the basis of our present knowledge, to recommend abolishing it.
Observing that the market was FREQUENTLY efficient, EMT Adherents went on to conclude incorrectly that it was ALWAYS efficient. The difference between these propositions is night and day.
The idea that in the system, if you manage it in an optimum way, all of the constituent parts of the system also win, flourish, and benefit, is intrinsic to business and even to capitalism itself, properly understood. But people don't understand it because we're not taught to think that way.
Despite the miracles of capitalism, it doesn't do well in popularity polls. One of the reasons is that capitalism is always evaluated against the non-existent, non-realizable utopias of socialism or communism. Any earthly system, when compared to a Utopia, will pale in comparison. But for the ordinary person, capitalism, with all of its warts, is superior to any system yet devised to deal with our everyday needs and desires.
An efficient payments system provides the infrastructure needed to transfer money in low-cost and convenient ways. Efficient systems are innovative in improving the quality of services in response to changing technology and changing demand.
Capitalism had arisen through the misuse and exaggeration of certain rights, notably the right of property - the basis of economic freedom - and the right of contract, which is one of the main functions of economic freedom. Therefore, even under Capitalism, so long as the old principles were remembered it was possible to recall the principles whereby Society had once been sane and well ordered.
I think the market driven economic system is the most productive system, but to have that work in the world, you've got to also have social investments to go along with that.
Democrats must rally behind a low-rate, broad-based tax system that is fair, simple and efficient.
I believe indeterminate sentencing can be extremely useful, but I also believe that any such system should always take into consideration the special knowledge as to the facts in a case which only the trial judge possesses.
The thing about markets, and I think the thing people don't understand about that, is markets are not kind, but they're very efficient. So when the marketplace determines an inefficiency in the system, it corrects that, and a market system that's left alone will reward good behavior and punish bad behavior.
I find Chinese debates about their political system domestically, but also about China's claims in the international system, to be among the most original and surprising and exciting of our time. The starting point is a system that none of us had anticipated, which I call Leninist capitalism, but also obviously because it is the most important emerging power. The question of China's relations with the United States in particular, and the rest of the world in general, is the question of war and peace in the 21st century.
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